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SLB N.V. (SLB)

Company Dividend Discount ModelIndustry: Oil & Gas Equipment & ServicesSector: Energy

Valuation Snapshot

Stable Growth$14.51 - $20.09$17.31
Multi-Stage$26.80 - $29.46$28.10
Blended Fair Value$22.71
Current Price$34.37
Upside-33.93%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-11.15%-2.47%1.080.930.600.491.221.951.951.961.871.71
YoY Growth--16.40%55.31%21.32%-59.69%-37.38%-0.04%-0.29%4.95%9.43%22.92%
Dividend Yield--2.59%1.68%1.22%1.19%4.50%14.48%4.37%3.03%2.39%2.31%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,645.00
(-) Cash Dividends Paid (M)1,565.00
(=) Cash Retained (M)2,080.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)729.00455.63273.38
Cash Retained (M)2,080.002,080.002,080.00
(-) Cash Required (M)-729.00-455.63-273.38
(=) Excess Retained (M)1,351.001,624.381,806.63
(/) Shares Outstanding (M)1,417.501,417.501,417.50
(=) Excess Retained per Share0.951.151.27
LTM Dividend per Share1.101.101.10
(+) Excess Retained per Share0.951.151.27
(=) Adjusted Dividend2.062.252.38
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-4.47%-3.47%-2.47%
Fair Value$14.51$17.31$20.09
Upside / Downside-57.79%-49.63%-41.55%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,645.003,518.633,396.643,278.883,165.203,055.463,147.13
Payout Ratio42.94%52.35%61.76%71.17%80.59%90.00%92.50%
Projected Dividends (M)1,565.001,841.952,097.812,333.722,550.742,749.922,911.09

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-4.47%-3.47%-2.47%
Year 1 PV (M)1,671.131,688.621,706.11
Year 2 PV (M)1,726.761,763.091,799.81
Year 3 PV (M)1,742.791,798.091,854.56
Year 4 PV (M)1,728.211,801.721,877.54
Year 5 PV (M)1,690.371,780.711,874.88
PV of Terminal Value (M)29,431.6731,004.6532,644.18
Equity Value (M)37,990.9339,836.8941,757.08
Shares Outstanding (M)1,417.501,417.501,417.50
Fair Value$26.80$28.10$29.46
Upside / Downside-22.02%-18.23%-14.29%

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